Nifty IT Index Slips 3% on Speculation of Fed Rate Cut Pace Reduction

Mumbai, November 18, 2024 - 12:54 IST

India's stock market continued its downward trend in afternoon trade on Saturday, with the Nifty IT index plummeting by over 3% amid heightened speculation about a potential slowing down of rate cut pace by the US Federal Reserve.

The benchmark gauge, N SE 100, was seen trading at 17,425.6, down 173 points from its previous close. Analysts attributed the slump to concerns over reduced monetary stimulus in the US, which is closely watched by global investors.

"This week's US Fed meeting is likely to see a pause in rate cut pace, sparking nerves among traders here," said Rohan Dhameliya, chief market strategist at Markets.com. "The Nifty IT index has been the most exposed segment to the global economic trends."

The S&P BSE It Index fell 3.08% to 12,951.99 points during the morning session, while Infosys slipped 2.36%, and TCS 0.63%. Wipro was down 1.67%.

Morgan Stanley said in a note that investors are bracing for a less enthusiastic tone from Chairman Jerome Powell, indicating a slowdown in rate cuts by the US Fed.

The US dollar index was seen trading at 96.57 on Monday morning, up from a two-week low below 95.55.

In another key development, the rupee is trading at 81.45 against the US dollar on Monday morning, slipping over 30 paise to its lowest level this month.

Stay tuned as we bring you all updates from the Indian bourses and global markets throughout the day...